- ADA recently tested a strong resistance zone before facing a pullback.
- Multiple corrective waves show potential accumulation near key Fibonacci levels.
- Market reaction at crucial support will dictate whether ADA resumes an uptrend.
Cardano’s price action has been marked by a strong rally, reaching a high of $1.32 before a clear rejection sent the price downward. This movement resembles prior price cycles where ADA surges, meets resistance, and corrects before resuming another leg upward. The recent peak aligns with historical resistance zones, making this an important level to watch.
Corrections have followed a structured pattern, with retracements occurring in distinct phases. The drop from $1.32 to $0.76 was the first major pullback, bouncing slightly before forming another lower high at $1.16. Since then, ADA has been following a downward trajectory, retesting key demand levels.
ADA’s Strong Rally and Subsequent Rejections
ADA’s retracement structure suggests that it is testing strong support levels that previously acted as springboards for upward movement. The $0.72-$0.75 range is particularly interesting, as it has historically acted as a consolidation zone before breakouts. If ADA holds this range, it could signal a potential accumulation phase before another rally.
However, failure to hold above $0.70 could open the door for a deeper correction toward $0.58-$0.60. This level aligns with prior liquidity grabs where buyers stepped in aggressively. If ADA reaches this zone and finds strong buying interest, it could set up another bullish move. On the flip side, a breakdown below $0.58 would suggest weakness, potentially dragging the price back to $0.50 or lower.
What’s Next for ADA? Key Scenarios
Cardano’s trajectory remains uncertain, but based on its historical structure, two key scenarios could unfold. If ADA maintains support above $0.72, it may gradually recover and push toward $0.85-$0.90, breaking the recent lower high structure. A clean breakout above this range would shift momentum, targeting $1.00 and beyond.
Alternatively, if ADA fails to reclaim higher levels and breaks below $0.70, it could indicate more downside ahead. A drop to $0.58-$0.60 would need to hold, or the market could enter a prolonged consolidation phase before attempting another bullish cycle.
